We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Medicines Company (MDCO) Q2 Loss Narrows, Revenues Tank Y/Y
Read MoreHide Full Article
The Medicines Company incurred second-quarter 2018 loss of 63 cents per share, narrower than the Zacks Consensus Estimate of a loss of 64 cents and the year-ago loss of 72 cents.
The company’s shares have increased 44.8% so far this year against the industry’s decrease of 4.4%.
Quarterly revenues plunged 84.7% year over year to $1.7 million. Also, the top line missed the Zacks Consensus Estimate of $7.58 million. This downside in the quarter was mainly attributable to lower sales of the company’s marketed drug, Angiomax, which faces generic competition in the United States.
Notably, in January 2018, The Medicines Company completed the sale of its infectious disease business unit to Melinta Therapeutics, an antibiotics company. With this divestiture, the former sold the worldwide rights of Orbactiv, Minocin and Vabomere. This deal was executed for $270 million in upfront consideration and guaranteed payments. The company is also entitled to receive tiered royalty payments of 5-25% on worldwide net sales of the aforementioned drugs.
The Medicines Company’s adjusted research and development (R&D) expenses (excluding the impact of one-time items) increased 27.1% year over year to $26.4 million primarily due to higher spend to support inclisiran. It is the company’s lead candidate, developed under a collaboration agreement with Alnylam Pharmaceuticals (ALNY - Free Report) for treating hypercholesterolemia.
In June, an Independent Data Monitoring Committee recommended continuation of phase III studies (ORION) of inclisiran unmodified. Moreover, in May, the company announced data from phase II ORION-1 study, which demonstrated that inclisiran led to reduction in key atherogenic lipoproteins other than LDL-C found in the blood that are responsible for heart attacks and strokes.
The company anticipates submitting a regulatory filing for inclisiran in the United States and EU by the end of 2019.
Adjusted selling, general and administrative (SG&A) expenses (excluding the impact of one-time items) declined 52.4% to $15.2 million.
The company believes that its $162.5 million in cash and cash equivalents as of Jun 30, 2018 along with some fixed and non-fixed source of payments is expected to be enough to fund operations till inclisiran’s launch.
The Medicines Company Price, Consensus and EPS Surprise
Vertex’s earnings per share estimates moved up from $3.16 to $3.79 for 2018 and from $4.33 to $4.58 for 2019 over the last 30 days. The company delivered a positive earnings surprise in all the trailing four quarters, with an average beat of 27.5%. The company’s shares have rallied 25.4% year to date.
Seattle Genetics’ loss per share estimates narrowed from $1.81 to $1.27 for 2018 and from 81 cents to 68 cents over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 12.93%. The stock has surged 68.2% so far this year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Medicines Company (MDCO) Q2 Loss Narrows, Revenues Tank Y/Y
The Medicines Company incurred second-quarter 2018 loss of 63 cents per share, narrower than the Zacks Consensus Estimate of a loss of 64 cents and the year-ago loss of 72 cents.
The company’s shares have increased 44.8% so far this year against the industry’s decrease of 4.4%.
Quarterly revenues plunged 84.7% year over year to $1.7 million. Also, the top line missed the Zacks Consensus Estimate of $7.58 million. This downside in the quarter was mainly attributable to lower sales of the company’s marketed drug, Angiomax, which faces generic competition in the United States.
Notably, in January 2018, The Medicines Company completed the sale of its infectious disease business unit to Melinta Therapeutics, an antibiotics company. With this divestiture, the former sold the worldwide rights of Orbactiv, Minocin and Vabomere. This deal was executed for $270 million in upfront consideration and guaranteed payments. The company is also entitled to receive tiered royalty payments of 5-25% on worldwide net sales of the aforementioned drugs.
The Medicines Company’s adjusted research and development (R&D) expenses (excluding the impact of one-time items) increased 27.1% year over year to $26.4 million primarily due to higher spend to support inclisiran. It is the company’s lead candidate, developed under a collaboration agreement with Alnylam Pharmaceuticals (ALNY - Free Report) for treating hypercholesterolemia.
In June, an Independent Data Monitoring Committee recommended continuation of phase III studies (ORION) of inclisiran unmodified. Moreover, in May, the company announced data from phase II ORION-1 study, which demonstrated that inclisiran led to reduction in key atherogenic lipoproteins other than LDL-C found in the blood that are responsible for heart attacks and strokes.
The company anticipates submitting a regulatory filing for inclisiran in the United States and EU by the end of 2019.
Adjusted selling, general and administrative (SG&A) expenses (excluding the impact of one-time items) declined 52.4% to $15.2 million.
The company believes that its $162.5 million in cash and cash equivalents as of Jun 30, 2018 along with some fixed and non-fixed source of payments is expected to be enough to fund operations till inclisiran’s launch.
The Medicines Company Price, Consensus and EPS Surprise
The Medicines Company Price, Consensus and EPS Surprise | The Medicines Company Quote
Zacks Rank & Stocks to Consider
The Medicines Company currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks to consider in the biotech sector are Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and Seattle Genetics, Inc. . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vertex’s earnings per share estimates moved up from $3.16 to $3.79 for 2018 and from $4.33 to $4.58 for 2019 over the last 30 days. The company delivered a positive earnings surprise in all the trailing four quarters, with an average beat of 27.5%. The company’s shares have rallied 25.4% year to date.
Seattle Genetics’ loss per share estimates narrowed from $1.81 to $1.27 for 2018 and from 81 cents to 68 cents over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 12.93%. The stock has surged 68.2% so far this year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>